Labor Department Partners with Tech Giants on AI Jobs Data

The U.S. Department of Labor has established data-sharing partnerships with major technology companies including OpenAI, Google, Meta, and Amazon to track artificial intelligence's impact on the workforce, acting Labor Secretary Keith Sonderling disclosed in recent remarks.

The agreements, formalized through memorandums of understanding, aim to supplement traditional government employment statistics that may not capture the pace of AI-driven changes in hiring and job composition. Sonderling acknowledged the department's data gap, stating that large tech firms and Fortune 500 companies possess the most relevant information about AI adoption and its workforce implications.

Why it matters

The Federal Reserve relies on Bureau of Labor Statistics employment data to make interest rate decisions that affect the entire economy. If AI transforms work faster than monthly surveys can detect, policymakers could be making critical decisions with outdated information. This public-private data arrangement represents a significant shift in how the government monitors labor market conditions.

Credibility concerns shadow the initiative

The Bureau of Labor Statistics, which operates within the Labor Department, has faced mounting challenges. Survey response rates have declined sharply, reducing the precision of its labor market assessments. A major downward revision to Biden-era job growth figures released after the 2024 election further damaged public confidence in the agency's numbers.

Sonderling acknowledged these credibility problems directly, noting that many Americans no longer trust BLS data. He committed to reforms that would increase transparency around data revisions and methodology.

The agency's credibility took another hit when President Trump fired BLS Commissioner Erika McEntarfer, making unsubstantiated claims about data manipulation. Economists across the political spectrum warned that political interference could permanently undermine confidence in official statistics. The Senate recently confirmed Brett Matsumoto, a longtime BLS economist, as the new commissioner. He emphasized that the public must see agency decisions as "driven by science rather than politics."

Federal Reserve explores new data sources

Federal Reserve Chairman Kevin Warsh has questioned whether traditional government statistics can keep pace with economic transformation. He launched a task force this summer to identify alternative data sources that could provide more timely insights for monetary policy decisions.

The Labor Department's tech partnerships appear aligned with this broader effort to modernize economic data collection. Sonderling said the findings from these collaborations would be made public, potentially giving markets and policymakers earlier signals about AI-driven workforce shifts.

Administration bets on job creation, not displacement

Sonderling expressed the Trump administration's view that AI will augment existing jobs and create new roles rather than trigger mass unemployment. The administration is emphasizing apprenticeship programs as a workforce preparation strategy, with 530,000 active registered apprentices now enrolled—about halfway to the president's stated goal.

The private sector data would help identify which skills and roles are emerging as companies integrate AI tools, potentially informing training and education priorities.

These details were first reported by Axios.